VC10X - Engineering liquidity in Deeptech - Brad Harrison, Founder, Scout Ventures

In this episode, West Point grad and Airborne Ranger Brad Harrison reveals how Scout Ventures backs frontier tech at the intersection of national security and innovation.

From underwriting "impossible" breakthroughs like Casimir force energy from space vacuum to AI semiconductors deemed unfeasible by experts, Brad shares the deep diligence, non-dilutive government funding edge, and leadership playbook behind their success.

⭐ Sponsored by Podcast10x - Podcasting agency for VCs - https://podcast10x.com

Key Topics:

- How military SOPs shaped Scout's 40th-revision investment process

- Fundraising truths: "It takes a really long time to make money in the fund business unless you're raising lots and lots of money"

- Culture as moat: "Culture starts with leadership" and "My job is to prevent war"

- Deep tech diligence: "Ten years ago, nine out of ten physicists you talked to told you that was impossible"

- Portfolio evolution: Engineering DPI in 18-year fund lives, unicorns like Unite Us, and avoiding herd mentality

- Founder advice: Recruiting is the #1 gap, and "you always gotta follow your gut"

Timestamps:

(00:00) - Preview

(01:25) - Introduction to the episode and guest, Brad Harrison.

(02:51) - How Brad's military background shaped Scout Ventures.

(05:09) - Pivotal firm-building decisions at Scout Ventures.

(07:30) - Advice for new GPs on building a multi-fund firm.

(08:24) - The importance of in-person meetings and investing in your team.

(10:05) - The role of culture, leadership, and values in venture capital.

(11:56) - Discussing Brad's film, "Brothers on Three".

(13:10) - Key components of LP reporting for new managers.

(14:59) - Building trust with LPs through communication and face time.

(16:20) - Scout's sharpest edge in sourcing and winning founders.

(17:56) - How to underwrite technical risk and IP strength at the seed stage.

(20:05) - The process of underwriting seemingly impossible technologies like Casimir Space.

(22:40) - The competitive advantage of using non-dilutive government funding.

(24:04) - How frontier tech investors navigate the typical 10-year fund cycle.

(26:30) - The importance of actively engineering liquidity in deep tech.

(28:05) - The "Four Rs" for helping founders: Raising capital, Revenue, Recruiting, and Retention.

(28:36) - Why recruiting is the most underdeveloped skill in early-stage teams.

(30:27) - The hardest part of the recruiting process for founders.

(31:50) - Scout's portfolio construction approach and how it has evolved.

(37:15) - Using an annual portfolio review to refine investment decisions.

(38:21) - Lessons learned from the flagship success of Unitus.

(40:13) - Biggest learnings from investing in startups over the years.

(42:00) - The danger of a "pack mentality" in venture capital.

(44:11) - Start of the Rapid Fire Round.

(44:27) - Sectors and regions Scout invests in.

(44:40) - Typical stage of investment.

(44:51) - Typical check size.

(44:59) - How founders can get in touch.

(45:07) - Where listeners can follow Brad Harrison.

Connect with Brad:

📧 brad@scout.vc

💼 Bradley C Harrison on LinkedIn

🌐 scout.vc

Podcast Links:

Prashant Choubey - https://www.linkedin.com/in/choubeysahab

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